| It's 10 weeks to tax time!
THERE are a number of end-of-year tax planning issues and strategies all businesses should consider between now and June 30. Taking action before the end of the financial year can save considerable tax. Following are 25 points to check, but probably the most important is to see your tax adviser who can relate the various opportunities to the particular circumstances of your business. • Timing issues Generally, it is advantageous to defer income until after the year end, and to claim deductions in the current income year. • Dividend payments Consider the timing of year-end dividend payments, particularly in light of the new Simplified Dividend Imputation rules. • Loans Minimise the possibility of having a loan received from the business deemed to be a dividend.
The tax man's season
Harry Colburn, who combines accounting services with his established tax law practice, offers insights into what life is like for an accountant at this time of year and what clients should look for in a tax preparer. ENGLEWOOD -- It's a busy time right now for the tax man. The crush of clients filing last-minute tax returns is nothing new to Harry Colburn, who combines his flourishing accounting firm, Colburn & Colburn LLC, with his established law practice, Harry S. Colburn, Jr. Professional Association, which specializes in estate planning, wills and trusts, tax law, real estate law and business law at 444 W. Dearborn St. "It's very hectic right now," Colburn, 65, said. "You have to turn people down. You can tell they're in a panic, trying to find somebody who has time to do their return.
Major tax collection drive expected
Dr. Omar Davies, Minister of Finance and Planning, was jovial as he opened the 2007/08 Budget Debate in Parliament. Beside him is Prime Minister Portia Simpson Miller, and in the background State minister of Finance, Fitz Jackson, both of whom are tickled by Davies' antics. - Rudolph Brown/Chief Photographer Minister of Finance Dr. Omar Davies stated on Thursday during the opening of the 2007/08 Budget Debate that to achieve a 14 per cent improvement in revenue collections "will require a sustained, aggressive compliance programme." The tax revenue projection is $215.9 billion. "I have instructed the financial secretary to work closely with the director general of tax administration in order to meet our target," said Davies. To achieve the projected increase in tax revenue for the current fiscal year, it is the Government's intention to enforce compliance by conducting forensic and large case audits, with an emphasis on arrears and improvement in the operational efficiency of customs.
Tax reform with big dose of duplicity
A little-noticed vote in the Florida House on Thursday put lawmakers on record this year about the largest portion of each property owner's tax bill. At a time when they are demanding that cities and counties slash their own budgets for property tax relief, lawmakers sent a different message with this vote. Hey, suckers, they might as well have said, we're raising your property taxes again. The vote was prompted by Rep. Ron Saunders, D-Key West, primarily to make a political point. He succeeded. By 65-44, mostly along party lines, House members refused to roll back or even hold the line on the property taxes the state requires for schools. "If you want to see one reason we have high property taxes," Saunders said in early debate, "look in the mirror." This is not political sophistry.
Are you confident in your tax planning?
When married couples draft a will, it is now common practice for solicitors to provide that on the death of the first partner, their 285,000 IHT-free amount is passed into a trust for the family and the rest of the estate passes free of tax to their spouse. This ensures that the surviving partner does not have to pay tax on the estate, and that it is not swelled when they die. This nil band rate trust is easy for the super-wealthy who are able to pay cash upfront, but for those for whom the family home makes up the lions share of the wealth, this is a lot harder. find out how much your home is worth One popular solution is that the estate passes in its entirety to the surviving partner, who then gives some form of an IOU to the trust. This means that on their death, the money owed is taken out of the estate while having a knock on effect and reducing the amount of IHT payable.
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